As Ghana prepares to develop its first lithium mine at Ewoyaa, a debate over tax concessions for Atlantic Lithium has raised concerns about long-term revenue protection.
The Natural Resource Governance Institute (NRGI) warns that permanent fiscal breaks could shortchange Ghana as global lithium prices recover, urging Parliament to scrutinize the company’s revised viability claims before ratifying the mining lease.
Atlantic Lithium’s subsidiary, Barari DV Ghana Ltd, seeks to halve its royalty rate from 10% to 5% and secure corporate tax revisions, citing plummeting lithium prices that have undercut projected profits. While the company claims its post-tax return rate has dropped to 13.6% from an initial 94%, NRGI analysis suggests the project remains viable, with potential returns near 28% even at current prices.
The institute cautions that without full transparency on Atlantic Lithium’s cost assumptions, Ghana risks locking in unfavorable terms just as analysts predict a price rebound. Goldman Sachs forecasts lithium could climb to $1,264 per tonne by 2028—nearly double today’s depressed values. NRGI recommends time-bound or price-linked concessions instead of permanent cuts, alongside safeguards against tax avoidance and stronger local benefit provisions.
With the lease ratification delayed by Ghana’s government transition, NRGI sees an opportunity to renegotiate terms that balance investor needs with national interests. The decision could set a precedent for how Ghana manages its critical mineral wealth as global demand for battery metals grows.
